President Sarkozy's pledge of €360bn (£284bn) in loan guarantees and capital injections for French banks, follows the main principles of similar measures announced in countries such as Britain and Germany. However, the French government insists it will not cost the taxpayer a cent.

Instead, the state will act as a facilitator when it comes to helping French banks in trouble – and even hopes to make a profit from the operation. A company will be set up to manage any refinancing requests. It will borrow on financial markets at advantageous rates, by virtue of its state backing, before loaning to banks at a higher rate that will vary according to each individual bank's state of health. The banks will offer as guarantees assets that can be sold in case of failure.

The arrangement has begged the question as to what happens should those assets turn out to be flawed ... would not the state then be obliged to resort massively to the public purse? French government sources insist such pitfalls should be avoided.

The idea put forward by the prime minister, Francois Fillon, that not only will taxpayers contribute nothing but that the state might actually "make money out of the crisis" has been greeted with some scepticism. One socialist MP described the assertion as "unrealistic and dangerous". Other commentators have pointed out that the plan will in fact be funded by debt, though the government says it will not add to the public deficit.

France is now in recession, unemployment and low spending power have long been real concerns for French people, and there are genuine fears that the financial crisis could soon seriously damage an already troubled economy. Hence President Sarkozy's insistence that any state help for the banks does not get swallowed up, but is passed on directly to the high street.

Leaders of the main French banks and insurance companies, who have again met the president at the Élysée, appeared to have got the message. "We commit ourselves to offering credit especially to households and small and medium sized businesses in need", said Georges Pauget, acting chairman of the French Banking Federation.

Sarkozy hopes that the colossal sums involved in the rescue plan remain largely virtual. "The reasonable bet we are taking is that in bringing these guarantees, we won't have to put them into play", he said. His comments are no doubt founded on the fact that so far, French banks have emerged from the crisis buffeted but intact. Most banking activity in France is based around retail banking, with relatively limited risks.

The French government's most drastic move so far in the crisis was to join with Belgium and Luxembourg to bail out the local government lender Dexia. BNP Paribas has even emerged as the eurozone's largest savings bank after it recently acquired 75% of the troubled financial group Fortis.